Keppel Corp unit Keppel Fels has picked up another deepwater semi-submersible order, announcing yesterday a US$560 million contract to build the seventh Ensco 8500 series rig for Ensco International.
On track: Contracted in 2005, the Ensco 8500 deepwater semi-submersible rig is meeting its schedule for delivery in the third quarter of this year
The contract value for the Ensco 8506, which includes equipment specified by the owner, is 4 per cent higher than the previous US$537 million contract signed for the Ensco 8505 rig in June.
The 8506 is scheduled to be delivered in the second half of 2012.
'Working with a leading shipyard that is familiar with our needs will enable us to advance our deepwater strategy more effectively,' said Ensco chairman, president and CEO, Daniel Rabun.
'As we continue to expand our deepwater presence, we again look forward to working with KepFels. Our US$3.1 billion investment in the Ensco 8500 series rigs demonstrates our commitment to playing a meaningful role in the growing deepwater market. Only two other companies will have ultra-deepwater semi-submersible rig fleets equal to the size of the Ensco fleet.'
The first of the seven 8500 series semis was contracted in 2005 and KepFels is on track for delivery in the third quarter of this year.
The rig has been chartered to Anadarko and Eni for operations in the US Gulf of Mexico.
'The contract to build a seventh semi for Ensco is a vote of confidence from a top-notch drilling contractor,' said Keppel Offshore and Marine chairman and CEO, Choo Chiau Beng.
'We remain committed to giving Ensco our full support and contributing to the growth of its deepwater fleet.'
The Ensco 8506 will be capable of drilling in up to 8,500 ft of water.
Its features include a two million pound quad derrick, offline pipe handling capability, 35,000 ft drilling capacity, and station-keeping capabilities that meet stringent requirements.
The latest 8506 contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year.
Keppel's stock closed 12 cents lower at $10.12 yesterday.
On track: Contracted in 2005, the Ensco 8500 deepwater semi-submersible rig is meeting its schedule for delivery in the third quarter of this year
The contract value for the Ensco 8506, which includes equipment specified by the owner, is 4 per cent higher than the previous US$537 million contract signed for the Ensco 8505 rig in June.
The 8506 is scheduled to be delivered in the second half of 2012.
'Working with a leading shipyard that is familiar with our needs will enable us to advance our deepwater strategy more effectively,' said Ensco chairman, president and CEO, Daniel Rabun.
'As we continue to expand our deepwater presence, we again look forward to working with KepFels. Our US$3.1 billion investment in the Ensco 8500 series rigs demonstrates our commitment to playing a meaningful role in the growing deepwater market. Only two other companies will have ultra-deepwater semi-submersible rig fleets equal to the size of the Ensco fleet.'
The first of the seven 8500 series semis was contracted in 2005 and KepFels is on track for delivery in the third quarter of this year.
The rig has been chartered to Anadarko and Eni for operations in the US Gulf of Mexico.
'The contract to build a seventh semi for Ensco is a vote of confidence from a top-notch drilling contractor,' said Keppel Offshore and Marine chairman and CEO, Choo Chiau Beng.
'We remain committed to giving Ensco our full support and contributing to the growth of its deepwater fleet.'
The Ensco 8506 will be capable of drilling in up to 8,500 ft of water.
Its features include a two million pound quad derrick, offline pipe handling capability, 35,000 ft drilling capacity, and station-keeping capabilities that meet stringent requirements.
The latest 8506 contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corp for the current financial year.
Keppel's stock closed 12 cents lower at $10.12 yesterday.